“features of social life - networks, norms, and trust - that enable participants to act together more effectively to pursue shared objectives".Measurement- Attitudes towards cooperation: number of cooperatives across locales - Measures of social behavior: participation is voluntary associations - Attitudes towards free riding and cheating: compliance with taxes, littering,

- Fewer barriers to entreprenurial activity- Lower degree of inefficient regulation & absence of corruptionContractual Institutions and Developmmenta digressionback to the inputswhy???A closer look at the channelsInstitutional capacity and civic virtueInstitutions, History and Civicness- higher trust in cities with some form of checks and balances on the executive before the Enlightment- higher civic capital among city-states in Italy (association with trade and commerce)- Origins of Industrial Revolution: Ethos of hard-work, civicness and entrepreneurial activity has been most prevalent in regions/cities with some constraints on the executive, a large middle-class (bourgeoisie), and commerce based economic actvitymy favorite relevant finding (from Italy)in regions/cities with high civic capital=> punishment of "corrupt" politicans=> high turnaround of "lazy" policy makersWhat drives civic virtue?Teaching Practices (not education) and Trust- Education, religion, family ties, etc.

elias.papaioannou@dartmouth.eduwww.dartmouth.edu~eliascollection of good behavior that tend to be simultaneously present in certain communities/countries whose inhabitants vote, obey the law, and cooperate with each other and whose leaders are honest and committed to the public good. (Putnam, 1993 and 1995)Civic-Social Capital"Virtually every commercial transaction has within itself an element of trust, certainly any transaction conducted over a period of time. It can be plausibly argued that much of the economic backwardness in the world can be explained by the lack of mutual confidence."Trust and Economic ActivityKenneth ArrowCrisis and Civic Capital- evidence that trust is build during catastrophes (such as external wars) and important big events.